We will transition to clean energy. The world has no choice. The trajectory of policy is towards ever more downward pressure on fossil fuels. And every unit of renewables deployed brings down their price, making them more competitive.
That transition will involve tens of trillions of dollars of investment.
Today we’re only 1% of the way into that transition. Solar just hit 1% of world electricity. Wind power is a few percent. Energy storage and clean transportation are both closer to one tenth of one percent of the scale they need to be at.
Energy transitions are huge undertakings. That means both a need for investment in R&D and an opportunity for the companies that create the new innovations that power the world, and the investors who back them.
And for the first time in history, the world installed more peak capacity of clean electricity generation than fossil electricity generation, as the chart below shows, in GW of new capacity per year. Fossil fuels still produce more total new energy each year, due to the intermittency of renewables. But the point where renewables amount to more total new energy on the grid each year than fossil fuels is now in sight.
Some of that funding will come as early-stage government R&D funding. Some of it will come as venture funding. Both are good for angel investors.
5. AngelList is the Right Platform
AngelList itself is a disruptive innovation for startup investing. It turns a process (raising money for your startup / investing in startups) that was previously shrouded in mystery, hugely time consuming, and heavily dependent on knowing the right people, and flattens that process. It’s a landscape-leveler for startups and investors alike. And through the ability of investors to join syndicates, they can draft on the knowledge and expertise of others.
I’ve been investing on Angel List for two years now, joining the syndicates of others. It’s given me access to investment opportunities that I never would have had, previously. And it’s allowed me to back startups that I think have the opportunity to change the world for the better.
There’s no place better or easier to do this than on Angel List.
(I’ll also remain a part of other angel networks, specifically Element 8 in Seattle.)
6. We Have a Moral Responsibility
The CO2 we emit into the atmosphere lingers there for a century. The warming it causes may last a millennium. The scars in our biosphere may last millions of years. We are leaving the natural world, and all the future generations who’ll live in it, impoverished.
I believe strongly in leaving a better world for our kids, their kids, and for all the generations to come. That’s why I focus on this sector in particular. And in the process of investing in clean technology, I see an opportunity for a triple bottom line: A return in financial gain, a return in a better world, and a return for billions of people who’ll get to enjoy that world.
If this interests you, and you’re an angel investor, I invite you to come join me.